In this lesson summary review and remind yourself of the key terms, graphs, and calculations used in the analysis of supply. Topics include the distinction between supply and quantity supplied, the law of supply, and the determinants of supply.
Log in DrumletNation 5 years agoPosted 5 years ago. Direct link to DrumletNation's post “What is a method for me t...” What is a method for me to better remember the different detriments of supply? • (6 votes) Aryan S 4 years agoPosted 4 years ago. Direct link to Aryan S's post “Well, you will have to le...” Well, you will have to learn them by heart and there is unfortunately no way around that. But, there are numerous mnemonics out there. For example, the mnemonic PINTS WC: W-Weather (26 votes) vedk1510 4 years agoPosted 4 years ago. Direct link to vedk1510's post “Do inferior goods disobey...” Do inferior goods disobey the law of supply too? • (2 votes) CalebHKim 4 years agoPosted 4 years ago. Direct link to CalebHKim's post “No, they don't. Let's go ...” No, they don't. Let's go over the factors that change supply and see if they change for inferior goods. Price of Inputs: When goods require less inputs (material, money, etc.), they are cheaper to make, so the supply increases. This would also apply to inferior goods. Therefore, inferior goods obey the law of supply. Hope this helps! (13 votes) Palak Deora 3 years agoPosted 3 years ago. Direct link to Palak Deora's post “1. If the producers expec...” 1. If the producers expect prices to rise in future, they will decrease the supply of candy canes to the market, right now. They will start supplying in large quantities when the prices increase. • (4 votes) valeriesze 3 years agoPosted 3 years ago. Direct link to valeriesze's post “The price refers to the p...” The price refers to the price of supplying goods or the cost of goods? Should be the money or the resources (cost) that need to spend for the supplying, right? This makes sense to the tutorial but I just want to make sure. • (3 votes) evan 3 years agoPosted 3 years ago. Direct link to evan's post “Yes, when it refers to pr...” Yes, when it refers to prices in Supply it means the input prices and resource prices. For example, when Toyota wants to make a car the supply costs would be the prices of the steel, tires, seats, airbags, rims, and whatever else is needed to be bought by Toyota to assemble it into one car. (2 votes) Trihorus 4 years agoPosted 4 years ago. Direct link to Trihorus's post “Let's say I'm a vendor wh...” Let's say I'm a vendor who sells tomatoes. And the demand for tomatoes is high and so is the price. As a result, everyone including me starts getting more tomatoes to sell. Now, tomatoes are practically flooding in the market, and so the price would fall. Now because the price falls, hardly anyone is selling them, resulting in increased demand and the whole cycle keeps repeating. In this case, does it not mean that as the price increases, the quantity supplied only increases to a point before it decreases again. Isn't it more like a sine function? • (3 votes) Martin 4 years agoPosted 4 years ago. Direct link to Martin's post “Well starting a tomato fa...” Well starting a tomato farm takes time, so does switching over to another produce. So you can't just jump from product to product hoping to make the largest amount of money possible. So the tomato market would reach a point where it's more or less saturated and other farmers would sell something else, because they wouldn't see profit in the tomato market. At the same time you wouldn't leave it, because you're making money and switching is expensive. (1 vote) HI 4 years agoPosted 4 years ago. Direct link to HI's post “I dont get the difference...” I dont get the difference of supply and quantity supply ㅠㅠ. Any one help me... • (4 votes) purity 2 years agoPosted 2 years ago. Direct link to purity's post “Quantity supplied is sole...” Quantity supplied is solely for price. (0 votes) Elizabeth Ramos a year agoPosted a year ago. Direct link to Elizabeth Ramos's post “Do you have another examp...” Do you have another example of derminants by supply? • (2 votes) chapisa4367 a year agoPosted a year ago. Direct link to chapisa4367's post “Qus 1 : According to high...” Qus 1 : According to higher priced expectation of candy canes , producers will decrease their current supply so that they will supplies more in higher prices in the future. Qus 2 : Increased government regulation cause production costs to rise , reducing the supply of regulated good. Other government regulation such as subsidies ,taxes, Price ceiling ,and pice cap Qus 3 : The key is what factor differentiate these two labeled graph. In this case , the increase in supplies’ graph is the correct one when we focus on change in non-price factors ,while the other one is not the result of non-price factors. • (2 votes) Annie Hill 7 months agoPosted 7 months ago. Direct link to Annie Hill's post “What about competition? O...” What about competition? One company expects the cost of production to go up, so they increase the price of the good/service, but another decides to take this increasing price of company A to decrease their own. So company A increases the price while company B decreases. How does this affect things? • (1 vote) Noah Shoop 3 months agoPosted 3 months ago. Direct link to Noah Shoop's post “what are the supply deter...” what are the supply determinants • (1 vote) Scarlett 3 months agoPosted 3 months ago. Direct link to Scarlett's post “1) the number of sellers ...” 1) the number of sellers in a market, 2) the level of technology used in a good’s production, 3) the prices of inputs used to produce a good, 4) the amount of government regulation, subsidies or taxes in a market, 5) the price of other goods sellers could produce, and 6) the expectations among producers of future prices. It is under "determinants of supply" in key terms (1 vote)Want to join the conversation?
P-Productivity
I-Indirect Taxation
N-Number of firms
T-Technology
S-Subsidies
C-Cost
Price of Related Goods: If a similar good is at a higher price AND makes you more profit, the supply of the original good would fall while the supply of the similar good rises. This would also apply to inferior goods: if those inferior goods make less money, the supply drops, and vice versa.
Number of Suppliers: When more people are making a good, the supply increases. The same would happen with inferior goods, for more people may make it which results in a rise of supply.
Technology Improvements: When a technology makes it cheaper or easier to produce a good, you can make more. Therefore, the amount of that good that can be produced increases, and the supply rises. The same can be applied to inferior goods; if inferior goods are now easier to make, you may as well make more of them.
Expected Prices: If the expected price of a good is greater than the current price, suppliers will hold back their goods so that they can sell them later at higher prices. This results in a drop of CURRENT supply. If an inferior good's price is expected to increase in the future, the suppliers will also hold back which drops supply.
2. If the government imposes regulations, such as increasing taxes, supply will be reduced. If the government pays the producers in the form of subsidies, then the supply may increase.
3. Increase in supply of a good means a right shift in the supply curve. Whereas, increase in the quantity supplied of a good, can be seen as an increase in quantity supplied at a particular price.
Change in supply is for things like cost of production.
